Bootcampers Making a Mark

Bloomberg reported yesterday on the settlement bootcamper Linda Tirelli obtained against Citigroup, Inc. in December. Tirelli had objected to the bank’s claim in bankruptcy court on the basis of a fraudulent mortgage assignment.

The bank, of course, denied the allegations. The article notes:

In settling the borrower’s objections, the bank didn’t admit wrongdoing. It paid Tirelli’s $35,000 legal fees, reduced the mortgage principal by $29,000 and chopped the interest rate almost in half, to 3 percent

This isn’t an isolated case. Bloomberg noted that Citigroup had paid $82,000 in attorney’s fees in four other bankruptcy cases involving documents supplied by the same company, Orion Financial Group, Inc. And another bootcamper, William Fava, has asked the Mississippi bankruptcy court to determine whether the bank has any rights to a mortgage loan in another case involving Orion.

The article also quotes Ryan Starks and April Charney, and references the recent Massachusetts victory Marie McDonnell was instrumental in securing.

The attention turned on these issues by diligent consumer lawyers is having an impact beyond the case-by-case victories, as well. Geoff Greenwood, a spokesman for the Iowa Attorney General’s office, is quoted as saying that AGs in 50 states are investigating the industry’s use of mortgage assignments as part of a wider probe into faulty foreclosure methods.